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Michael Pettis gives us a very thorough report on the stunning and mystifying report from China that its FX reserves increased by $75.4 billion in the month of April alone. To put this in context, China already has the world's largest foreign exchange reserves, and unbelievably, the pace of its growth in FX reserves is accelerating. FX reserves grew $247 billion in 2006, and then the addition almost doubled in 2007 to $462 billion. And now the growth in April is nearly half the growth of the first three months of the year.''